UPFA MP Dinesh Gunawardena yesterday claimed that the government is seeking foreign loans since it is bankrupt and that it is accepting the conditions imposed by the IMF.

Speaking at a Mahajana Eksath Peramuna conference in Ginigathhena, he said the government was accepting these conditions and cutting down on welfare.

The government was seeking to scrap Rs 20 billion allocated for welfare, he added. Therefore, the fertilizer subsidy and other welfare schemes are scrapped and controlled prices for rice and other goods are also being removed, he said.